This year’s session of the South Dakota legislature made some changes to the laws governing Tax Increment Financing Districts. Those are areas under development where increased property taxes are dedicated to paying for the improvements in those areas.
The Department of Revenue has issued the first report on TIF use statewide. It shows one hundred ninety-one active districts, with total valuation of about one point four billion dollars.
Governor Dennis Daugaard, says changes were needed.
Daugaard says previously TIF tax costs were spread statewide. He says that should be applied more narrowly.
Daugaard says most opposition comes because people don’t understand the process.
Local governments recover property taxes when TIF’s are paid off, usually in eight to ten years.